Both hedge funds manage about $300 million, although BAM had assets of about $1 billion two years ago before being buffeted by investment losses and investor redemptions. BAM, which was founded in 2002, moved some illiquid assets into a side-pocket in November.

No money will change hands; instead, BAM founders Ross Berman and Hal Mintz will join AM as partners, alongside the latter firm’s founders, Mark Friedman and Adam Stern. Berman and Mintz will become co-chief investment officers alongside Friedman. Stern will remain CEO of the firm he and Friedman co-founded in 2001.

“We have known the co-founders of AM and several of their portfolio managers for years,” Berman said. “A combination with them brings forth many powerful synergies.”

Both firms are based in New York. The deal is expected to close in the second quarter.

Editor's Note

In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…